Why Incorporate In Singapore

Why Incorporate In Singapore

Doing business in Singapore is considered one of the easiest by the World Bank. Besides, there are many tax advantages for companies like the partial and full tax exemption schemes. Tax rates are very low at an effective rate of 8.4% for profits up to $300k and a flat 17% for profits more than $300k.

FULL EXEMPTION SCHEME FOR NEWLY INCORPORATED COMPANIES

Under the scheme, qualifying new companies can enjoy the following:
• full exemption on the first $100,000 chargeable income; and
• A further 50% exemption on the next $200,000 of chargeable income for the first three consecutive YAs.

The table below summarises the amount of tax exemption.

Chargeable Income % Exempted from Tax Exempted Amount
First $100,000 @100% =$100,000
Next $200,000 @50% =$100,000

The maximum exemption to be enjoyed for each company is $200,000 ($100,000 + $100,000).

PARTIAL EXEMPTION SCHEME

All companies including companies limited by guarantee can enjoy the partial exemption scheme.

Qualifying companies enjoy the following:
• 75% tax exemption on the first $10,000 of chargeable income; and
• A further 50% tax exemption on the next $290,000 of chargeable income.

Chargeable Income % Exempted from Tax Exempted Amount
First $10,000 @75% =$7,500
Next $290,000 @50% =$145,000

The maximum exemption to be enjoyed for each company is $152,500 ($7,500 + $145,000).



For more information on these tax schemes, please refer to here.


Contact us to find out more on how much taxes are payable based on your company’s profits.